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Alabama Income Tax
Alabama allows for $1500 personal exemption for each taxpayer and his/her spouse as well as a $300 to $1000 for each dependant.
Income taxes are due by April 15th.
Alabama Tax Filing Guide
Here are detailed instructions for filing taxes in the state of Alabama.
Consider using TurboTax to E-File your Alabama taxes.
Alabama Residents
If you are a Alabama resident and have an income of over $5250 (or $10500 if you’re a married couple filing jointly) you will need to file a Alabama income tax return. To file your return you may use either Form-40A (attached below) or Form-40 (attached below). You may use Form-40A (attached below) if you were a resident for the entire year, you don’t itemize deductions, you don’t claim adjustments to income, you are not filing Schedules C,D,E, or F, and you are not claiming a credit for taxes paid to different state. If you do not meet all the conditions of Form-40A (attached below) you will need to use Form-40 (attached below).
Related Tax Forms
- Form 40A - Alabama Individual Resident Income Tax Return (Short)
- Form 40 - Alabama Individual Resident Income Tax Return (Long)
Part-Year Alabama Residents
If you moved into or out of Alabama during the tax year, you are considered a part-year resident of Alabama. Part-year residents of Alabama must report all income while they were a residents of Alabama that exceed $5250 (or $10500 if you’re a married couple filing jointly), no matter where is was earned. Part year residents of Alabama must also report all income earned from Alabama sources that exceed $1,500 (or $3,000 and married and filing jointly) made during the time of nonresidency. For filing requirements while a resident see the Alabama Residents or Alabama Residents That Work In Another State sections. For filing requirements while a nonresident see Alabama Nonresident Who Sold Property or Alabama Nonresident Working In State sections.
Alabama Residents who work in another state
If you are an Alabama resident and have an income of over $5250 (or $10500 if you’re a married couple filing jointly) you will need to file a Alabama income tax return. If you are a resident of Alabama who worked in another state you will need to file your return using Form-40. To avoid dual taxation complete Schedule CR and attach it to your W-2, Alabama return (filed with Form-40), and the other state’s return. If you had to pay taxes to more than one other state you will have to work out how much to pay to each state and the size of your total Alabama credit by using Schedule CR (see page 21 for an example).
Related Tax Forms
- Form 40A - Alabama Individual Resident Income Tax Return (Short)
- Schedule CR Worksheet - Alabama Credit for Tax Paid to Another State
- Form 40 - Alabama Individual Resident Income Tax Return (Long)
Non-Residents who work in Alabama
If you are a nonresident of Alabama that made more than $1,500 (or $3,000 and married and filing jointly) of taxable income from Alabama sources you must file a nonresident return. Taxable income includes income such as wages, commission, or salaries. You must use Form 40NR (see attached) to file your Alabama nonresident return. For additional information on filing Form-40NR see Form-40NR Instructions.
Related Tax Forms
- Form 40NR - Alabama Individual Non-resident Income Tax Return
Non-Residents who sold property in Alabama
If you are a nonresident of Alabama that made more than $1,500 (or $3,000 and married and filing jointly) of taxable income from Alabama sources you must file a nonresident return. Taxable income includes the sale of income. You must use Form 40NR (see attached) to file your Alabama nonresident return. For additional information on filing Form-40NR see Form-40NR Instructions.
Related Tax Forms
- Form 40NR - Alabama Individual Non-resident Income Tax Return
Alabama State Tax Forms
- Form 40NR - Alabama Individual Non-resident Income Tax Return
- Form 40A - Alabama Individual Resident Income Tax Return (Short)
- Form 40 - Alabama Individual Resident Income Tax Return (Long)
- Tax Table - Alabama Individual Income Tax Table
- Schedule A, B, CR & DC - Alabama Itemized Deductions, Interest and Dividend Income,Credit for Taxes Paid to Other States and Donation Checkoffs
- Schedule CR Worksheet - Alabama Credit for Tax Paid to Another State
- Schedule D & E - Alabama Profit from Sale of Real Estate, Stocks, Bonds, etc. and Income from Pensions, Annuities, Rents, Royalties, Partnerships, S Corporations, Estates and Trusts
- Form 4952A - Alabama Investment Interest Expense Deduction
- Schedule OC - Alabama Other Available Credits
- Standard Deduction Chart - Alabama Standard Deduction Chart
Relevant Links
- State of Alabama Tax Website - Official Site
- Additional Tax Forms - A Comprehensive Collection of Alanama Tax Forms
- Check Refund Status - Check Your Alabama Refund Status
Alabama Mailing Address
Wondering where to mail your Alabama taxes? Here's the address:If you are not making a payment, mail your return to:
Alabama Department of Revenue
P. O. Box 154
Montgomery, AL 36135-0001
If you are making a payment, mail your return, Form 40V, and payment to:
Alabama Department of Revenue
P. O. Box 2401
Montgomery, AL 36140-0001
Alabama Sales Tax
Alabama has a 4% statewide sales tax on tangible property. Local jurisdictions however impose their own sales tax as well however usually making the overall sales tax much higher than 4%. There are 16 different types of sales taxes in Alabama.
